Determinants of Innovative Activities: Evidence from Europe and Central Asia Region

Lau, Chi Keung Marco and Yang, Fu Steve and Zhang, Zhe and Leung, Vincent K.K. (2013): Determinants of Innovative Activities: Evidence from Europe and Central Asia Region.

Abstract

Recent studies in the innovation literature reveal that Foreign Direct Investment (FDI) promotes the innovation activities in the recipent country through spillover effects. In this paper we extend the existing literature by incooprating the corruption index in the estimation procedure. Using a cross-country analysis from the Europe and Central Asia (ECA) region , covering 57 countries over the period of 1995-2010, we find no evidence of FDI spillover effect on innovative activity. However, corporate corruption and expenditure on education sector are positively related to the number of patents applications. Our study shed light on the national innovation activities and anti-corruption programs.

• Item Type: MPRA Paper
• Language: English
• Keywords: Foreign direct investment; Corruption; Innovation; Technology transfer
• Subjects: D - Microeconomics > D7 - Analysis of Collective Decision-Making > D73 - Bureaucracy ; Administrative Processes in Public Organizations ; Corruption; F - International Economics > F2 - International Factor Movements and International Business > F21 - International Investment ; Long-Term Capital Movements; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O32 - Management of Technological Innovation and R&D; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O34 - Intellectual Property and Intellectual Capital; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O38 - Government Policy

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